Prologis Lifts Profit Outlook as Results Soar

By Chelsey Dulaney 

Prologis Inc. said profit and revenue soared in the third quarter, as the San Francisco-based industrial real-estate company continued to benefit from higher rents and occupancy rates.

The company boosted its earnings guidance for the year to $1.51 to $1.53 a share, up from its previous range of $1.12 to $1.16 a share.

Prologis also narrowed its current-year forecast for core funds from operations to a range of $2.19 to $2.21 a share from its previous guidance of $2.18 to $2.22.

The current Prologis was formed in June 2011, when the nation's two biggest publicly traded warehouse owners--Prologis and AMB Property Corp.--merged in one of the largest real estate deals since the recession.

In the latest quarter, Prologis said occupancy for real estate it owns and manages ticked up to 96% from 95% a year earlier.

In all for the period ended Sept. 30, Prologis's profit rose to $259 million from $136.2 million a year earlier. On a per-share basis after the payout of preferred dividends, the company earned 49 cents a share, up from 23 cents a year earlier.

Core funds from operations were 58 cents a share, compared with 48 cents a share a year earlier.

Revenue surged 40% to $580.6 million.

Analysts polled by Thomson Reuters had forecast 19 cents a share in earnings on $486.8 million in revenue.

Write to Chelsey Dulaney at [e-mail]

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October 20, 2015 09:03 ET (13:03 GMT)

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